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Two dead as alleged NZ gunman caught

Sarah Robson

The man suspected of shooting dead two staff at a New Zealand unemployment office has been taken into custody, without any more shots being fired.

Police dogs and members of the armed offenders squad caught 48-year-old Russell John Tully just after 5pm local time (1500 AEST) on Monday not far from Lake Hood, just east of Ashburton.

He had to be treated for dog bite injures afterwards.

Police had spent much of the day searching for the homeless man after two Work and Income (WINZ) employees were shot dead and another seriously injured about 10am.

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Canterbury district commander Superintendent Gary Knowles says there were about 100 staff on the ground, with extra resources brought in from across Canterbury, involved in the search.

Police are still looking for the weapon used in the shooting.

A decision on what charges will be laid may not be made until Tuesday morning.

Meanwhile, Social Development Minister Paula Bennett, who was visibly upset, says she's in complete shock.

"It's an incredibly sad day for the victims' families, for WINZ staff in general and I think for all of New Zealand," she told reporters outside the Ashburton police station.

"I don't think anyone woke up this morning imaging that this was what they would be dealing with in the day. This is a small community, the Work and Income staff stick together, they're proud of the work that they do."

All WINZ offices have security guards, but Bennett says there was little anyone could do to prevent the tragedy that unfolded.

"In this kind of circumstance I can't imagine anything was going to stop what he did. It was someone with an absolute intent and it's just horrific," she said.

Bennett intends to speak with the families of the victims at some stage.

Ministry of Social Development chief executive Brendan Boyle confirmed Tully has a history with WINZ and he had been trespassed from the office a week ago for intimidating behaviour.

WINZ staff are being offered counselling and support.

Some clients were also in the office at the time of the shooting.

A person who witnessed the shooting told the Ashburton Guardian that a man entered wearing a black balaclava and shot two women.

Just last month, the newspaper ran a story on Tully after he pitched a tent in the town's domain.

He was moved on by police and had been sleeping rough by the Ashburton River.

He told the newspaper he had fallen out with his flatmate and couldn't afford the $NZ300 ($A279.29) a week rent for other houses available in Ashburton.

Tully told the Guardian he'd returned to his home town in 2011 after working in mines in Australia.

He had "come home to die" from an unnamed skin disease which caused boil-type lumps and tightened his joints.